According to statistics published in the Annual State Of The Nation Report by POWERful Women, the energy industry has seen slow progress in gender diversity on company boards over the past year.
The report shows that:
- only 15% of executive director positions within the top 80 UK energy companies are held by women (up by just 1% compared to last year); and
- just 25% of the top 80 UK energy companies have any women in executive director roles (an improvement of 3% from last year).
The organisation responsible for undertaking the report, POWERful Women, is campaigning for greater representation of women at the top of the UK’s energy industry. Its goal is to see 30% of executive board roles and 40% of middle management roles filled by women by 2030.
However, the number of companies to have achieved this goal has declined, from 15 last year to only 11 this year.
2022 saw only a 3% increase in the number of board seats (both executive and non-executive) in the top 80 UK energy companies occupied by women, rising to just 27%. This percentage is much below the 33% target the Hampton Alexander Review Challenged FTSE 350 firms to meet by 2020.
Oil and gas companies increasing the number of female executives
The report compared progress between different sectors of the energy industry. It found that, for example, within oil and gas (which, traditionally, has trailed other sectors in terms of female representation) the number of female executive directors has risen by 5% over the past year, from 8% to 13%. The proportion remained static at 18% at power and utility firms which suggests that whilst still lagging behind, the oil and gas sector appears to be making faster progress on gender diversity than other energy sectors.
Katie Jackson, Chair of POWERful Women, said:
“While we have seen a modest increase in the number of women on boards in the largest employers of the UK energy industry, which is to be welcomed, we are disappointed that the number of women in executive director roles has risen by just one percent on 15% which is glacial progress.”
“We require step change on gender diversity in UK energy as we strive to reach net-zero.”
UK energy minister, Greg Hands, commented:
“We need better representation at the top and more women in leadership roles to drive towards our goal of clean, home-grown, affordable energy for Britain.”
Elisabeth Hunt, PwC energy and infrastructure deals tax partner, added:
“Firms have shown their agility in responding to a wealth of challenges from decarbonisation to more recent issues such as the Ukraine war and the cost of living crisis. If they are to achieve the 2030 targets, it’s vital they harness this speed and dexterity to drive more female talent into each sector and recognise the benefits and skills a diverse workforce and leadership team can provide.”
What should I be doing as an employer?
Data shows that the millennial women managers in the energy industry are faring much better than previous generations, meaning that, as time goes on, women are securing an increased proportion of senior leadership roles in what is, traditionally, a male-dominated market. Comparing the age of senior managers by gender provides some insight into the direction which gender diversity is likely to take in the years ahead.
Under the Equality Act 2010, it is unlawful for employers to discriminate on grounds of sex when recruiting (e.g. as to terms of employment or by not offering employment in the first place) and whilst employment is ongoing (e.g. by not providing opportunities for promotion, transfer or training or any other benefit).
Beyond the obvious need to avoid unlawful discrimination, however, there is a wealth of research showing the benefits of having a diverse workforce, not least at a senior executive level.
As an employer, it’s important to ensure you are always fair in the interview progress regardless of somebody’s gender, to avoid employment tribunal claims or discrimination under the Equality Act 2010 you must be fair and inclusive of all candidates.
How can we help?
Peter Nicholson is a Legal Director in our specialist Employment Law team.
For further information in relation to the subjects discussed in this article, please contact Peter or another member of the team in Derby, Leicester, or Nottingham on 0800 024 1976 or via our online enquiry form.
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